An investor bought two bonds. bond A was an 8% bond at 102 and bond B was an 8½% bond at 104. The commission was $5 per bond. Compute how much greater the current yield from bond B is than from bond A. (Round yields to two decimal places.)

Current Yield

The annual income (interest or dividends) divided by the current price of the security, typically used for bonds.

Bond A

A generic term for any type of bond, often used in examples to explain bond investment concepts without referring to a specific issue.